Ouch - A Big Hit Presents a Buying Opportunity
Wow. Global stocks plunging. More bad news in the financial sector. And the Federal Reserve with a surprise 3/4 point cut to hold off some of the pain. There is some other news mixed in too, with oil backing down a bit and a stimulus plan creeping closer to reality. If only the stimulus plan was a reasonable one and truly quick, like now, instead of another political game that waits through more pain.
Assuming some tax rebate comes in soon I have different plans for it now. We were waiting for the market to show it’s real direction before finishing off our 2007 Roth contributions. It looks like it’s about time to buy on another big dip in the market. The money we have for our 2008 contributions might be put to use too. This is a decent size pullback, I believe 10% YTD. We will still be dollar cost averaging our contributions by not dumping it all in now, but will also be timing them to invest on the dips in the market. Even with the volatility of the past several years this month has been a harsh one.
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